Ethereum (ETH) is trading unevenly late Thursday after news broke that the US SEC approved spot Ethereum ETFs. This unexpected move surprised the market, which had expected rejections just a week ago.
Currently, Ethereum is trading around $3,800. This is down from earlier highs near $4,000 but up from session lows at $3,520. For the week, Ethereum is up 24%. Rumors about an SEC u-turn began on Monday, followed by intense discussions between ETF issuers and the SEC.
Traders have been bidding up Ethereum, anticipating that ETFs will boost ecosystem growth. On Thursday, the SEC approved 8 spot Ethereum ETFs.
Why Spot Ethereum ETF Approval Matters
Spot Ethereum ETF approvals in the US will likely push up Ethereum’s price as institutional investors enter the market. Traders remember Bitcoin’s surge to record highs following spot Bitcoin ETF approvals earlier this year. Ethereum could see a similar rise, with record highs near $4,900, a 28% increase from current levels.
This will bring more liquidity to Ethereum, encouraging adoption, activity, and development. Ethereum ETFs should solidify Ethereum’s status as the leading smart-contract blockchain.
Ethereum Price Prediction – Where is ETH Headed Next?
The approval of spot Ethereum ETFs might result in short-term selling pressure. This mirrors what happened when spot Bitcoin ETFs were approved earlier this year. Some traders take profits after confirming a positive market catalyst.
If there is strong demand for Ethereum ETFs, ETH could soon surpass $4,000. Regulatory uncertainty in the US has led many traders to short ETH against other cryptos. Earlier this year, many believed the SEC was pushing to classify ETH as a security.
The approval of spot Ethereum ETFs makes it clear that ETH is considered a digital commodity like Bitcoin. Unwinding many shorts could potentially boost the market.
Technically, cryptocurrencies suggest that since breaking its March to mid-May downtrend and surpassing its 21 and 50-day moving averages, a retest of March highs near $4,100 is likely. Once Ethereum breaches this level, it’s likely to experience a rapid rise to 2021 highs near $4,900.
Disclaimer
FAQ
As of late Thursday, Ethereum is trading around $3,800, experiencing fluctuations due to the recent SEC approval of spot Ethereum ETFs.
The approval of spot Ethereum ETFs by the US SEC is significant because it is expected to boost Ethereum's price by attracting institutional investors, similar to the impact seen with Bitcoin ETFs.
Breaking its March to mid-May downtrend and surpassing its 21 and 50-day moving averages suggest that Ethereum might retest March highs near $4,100 and potentially rise to 2021 highs near $4,900.
